Sweden's Borg sees years more of bank capital, household debt measures

STOCKHOLM Wed May 21, 2014 11:27am EDT

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STOCKHOLM May 21 (Reuters) - Swedish Finance Minister Anders Borg said on Wednesday moves to boost bank capital requirements and deal with high levels of household debt in the Nordic country will be a process that plays out over several years.

"I think we need, on a continuous basis, to tighten the demands on the bank system and take further measures to reduce risks with household debt and that is a process that is going to go on for several years ahead," Borg told reporters on the sidelines of a banking conference.

Sweden's Financial Supervisory Authority said earlier on Wednesday a one percent countercyclical buffer for the country's banks was reasonable and that such a capital demand could be activated from summer 2015. (Reporting by Johan Sennero and Simon Johnson; writing by Niklas Pollard)